Rethink Property Investing, Fully Updated and Revised Edition E-Book

Scott O'Neill

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 426

Veröffentlichungsjahr: 2023

Beschreibung

The definitive guide to building a profitable commercial property portfolio -- now fully updated and revised Australia's bestselling commercial property book, Rethink Property Investing, offers practical advice for any investor looking to move beyond traditional residential real estate and enter the profitable world of commercial properties. Leading investors Scott and Mina O'Neill show you how they retired at the age of 28 and now live off the income generated by their $75 million commercial property portfolio. This invaluable guide dispels the investing myths and demystifies complex property principles and strategies using a clear, straightforward, and easy-to-understand approach. This is the book Scott and Mina wished they had when they started out: an honest, no-nonsense handbook filled with practical examples, personal stories, expert advice and real-world information. Rethink Property Investing aims to help you earn enough passive income to retire early and enjoy your life -- whether you're a residential property investor looking to go to the next level or an experienced investor seeking a more advanced approach. Now fully updated and revised, this edition shares detailed new property examples and gives the lowdown on value-add opportunities and investment strategies like syndicates. Rethink Property Investing will show you how to: * Build your own commercial property portfolio following 7 Easy Steps and the Top 5 Property Plays * Follow the strategies Scott and Mina O'Neill used to build a $75 million portfolio in 12 years * Maximise the performance of your existing property portfolio using proven techniques * Understand how different commercial properties perform, especially in the current economic climate and with current interest rates * Find the best commercial property opportunities available today so you can build a $200K passive income Learn how you can create wealth successfully through commercial property investing, using simple yet powerful strategies from two people who have been there and done that. From developing an investment mindset to financing and managing your property, Rethink Property Investing will guide you every step of the way.

Leseprobe

Table of Contents

COVER

TITLE PAGE

COPYRIGHT

PREFACE

INTRODUCTION

Scott's story

Mina's story

PART I: MOVING BEYOND YOUR BACKYARD

OUR FIRST COMMERCIAL PROPERTY PURCHASE

SUBSEQUENT COMMERCIAL PROPERTY PURCHASES

Property 24 of current holdings — regional industrial showroom

Property 25 of current holdings — KFC + Hungry Jack's + rental shops

Property 26 of current holdings — Brisbane industrial property

Property 27 of current holdings — commercial development site

Property 28 of current holdings — Perth shopping centre

Property 29 of current holdings — industrial warehouse

WHAT COMMERCIAL PROPERTY IS (AND ISN'T)

What it is

What commercial property isn't

WHAT YOU NEED TO KNOW FIRST

Cash flow positive

Better returns

Yields

HOW DO YOU MAKE MONEY OUT OF THIS?

BUSTING THE MYTHS

Vacancies

Only for the wealthy

Low capital growth

Fewer value-add opportunities

Commercial property investment carries a high level of risk (higher than residential)

Part I Summary

PART II: THE 8 STEPS

STEP 1: MONEY HABITS

Savings strategies

What buffers you need

What can we learn from this?

STEP 2: INVESTMENT MINDSET

The fear mindset

Opportunistic mindset

Rolling with the punches mindset

Profit mindset — short and long term

STEP 3: ASSEMBLING YOUR EXPERT TEAM

Mortgage broker

Buyer's agent

Property manager

Accountant

Solicitor/conveyancer

Insurance Broker

STEP 4: ASSET SELECTION

Macroeconomics — the big picture

Vacancies

What to invest in

Where to invest

Where are they?

STEP 5: METHOD OF SALE

1. Auctions

2. Expressions of interest (EOIs)

3. Fixed-price listings

4. Off-market sales

STEP 6: FINANCE

Starting out

Loan structure and application process

STEP 7: THE NEGOTIATIONS

Negotiating a good deal

STEP 8: MANAGING THE PROPERTY AND UNDERSTANDING THE TAX

How to manage your property portfolio

How to manage and understand your tax obligations as an investor

How depreciation works on commercial property

Part II Summary

PART III: OUR TOP 5 PROPERTY PLAYS

PLAY 1: HOW TO BUILD A $200 000 PASSIVE INCOME

As little cash as possible

Commercial versus residential

PLAY 2: HOW A PROPERTY CAN PAY ITSELF OFF IN 10 YEARS

Higher net yields

Strong debt reduction strategy

Note

PLAY 3: HOW TO INCREASE CAPITAL GROWTH WITH VALUE-ADDS

The property and its capital growth

The property and value-add opportunities

PLAY 4: HOW TO CHECK THE NUMBERS SO YOU DON'T OVERPAY

Offer subject to due diligence

Buy a property with excellent relettability qualities

PLAY 5: HOW SYNDICATION CAN WORK FOR YOU

So what is a syndicate?

Different types of syndicates

The benefits

What's the catch?

Setting up a syndicate

To syndicate or not?

Part III Summary

CONCLUSION

Would you like to further your knowledge of commercial property?

Why invest now?

What's happening in the market right now?

Who's performing best in 2023?

Are you up for the challenge?

Keep moving forward

The annual review

The last word

ACKNOWLEDGEMENTS

COMMON COMMERCIAL REAL ESTATE TERMINOLOGY

END USER LICENSE AGREEMENT

List of Tables

Chapter 4

Table 1: taxation summary of rental properties

Table 2: individual investors’ interest in rental properties

Table 3: CAGR per sector

Table 4: residential and industrial capital growth 1995–2022

Table 5: total 10-year rental income forecast

Chapter 5

Table 6: average cash-flow return each year

Chapter 6

Table 7: costings for a $600 000 commercial property

Chapter 7

Table 8: purchasing costs based on a $708 613 house

Table 9: purchasing costs based on a $495 000 house

Table 10: rental potential at $495 per week

Table 11: costings for a 70% LVR on a $308 000 commercial purchase

Table 12: commercial rental potential

Table 13: rental potential

Chapter 8

Table 14: three year profit on a $2 200 000.00 purchase

Chapter 9

Table 15: rental management fee comparisons

Chapter 10

Table 16: yield compression

Chapter 12

Table 17: growth comparison over 10 years of two investment scenarios

Table 18: deposit needed per property value

Chapter 15

Table 19: cash-flow returns based on different debt levels and interest rate...

Table 20: single property with 70 per cent debt

Table 21: six properties combined

Table 22: straight cash purchase of two properties

Table 23: commercial vs residential cash-flow returns

Chapter 16

Table 24: Rethink Investing debt reduction calculator

Table 25: Investment performance over 10-year period

Chapter 17

Table 26: commercial purchase price $2 815 243

Table 27: commercial purchase price $6 300 000.00

Table 28: Commercial purchase price $1 725 000

Table 29: Commercial purchase price $5 575 000.00

Table 30: commercial purchase price $1 070 000

Table 31: commercial purchase price $4 250 000

Table 32: lease length guide

Table 33: development cost breakdown

Table 34: solar rent equity

Chapter 19

Table 35: comparing a syndicate to direct investment

Table 36: REITs vs DI

List of Illustrations

Chapter 4

Figure 1: Average net yields commercial versus residential net yields in Q4 ...

Figure 2: Commercial vs Residential CAGR

Figure 3: Average CAGR per sector

Figure 4: commercial vs residential net yields

Figure 5: total returns from 1995 to 2022

Figure 6: Interest rates since the GFC

Figure 7: Dan Murphy’s yield from 2009 to 2022

Guide

Cover

Table of Contents

Title Page

Copyright

Preface

Introduction

Begin Reading

Conclusion

Acknowledgements

Common Commercial Real Estate Terminology

End User License Agreement

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This revised and updated edition first published in 2024 by John Wiley & Sons Australia, LtdLevel 4, 600 Bourke St, Melbourne, Victoria 3000, Australia

First edition published in 2021

© John Wiley & Sons Australia 2023

The moral rights of the authors have been asserted

ISBN: 978-1-394-18857-4

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.

Cover design by WileyFront cover image: © bingokid / Getty Images

Table sources: Tables 1 and 2: © Australian Taxation Office for the Commonwealth of Australia. Figure 6: © Reserve Bank of Australia.

All photos owned by Scott O’Neill, except P209: © Ray White Tradecoast Murarrie. P200: © Cushman & Wakefield. P216: © DFR Commercial.

Disclaimer The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the authors and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

INTRODUCTION

Scott's story

Creating a $75 million-plus property portfolio doesn't happen overnight. It doesn't happen in your own backyard either. The path I took was shaped by a childhood and early adulthood spent obsessing over the Australian property market.